This is the April 2020 Monthly Recap of the Trade Spotlight: Options advisory segment.
Cocoa Call Option (3/26/20)
Long the July 2020 Cocoa 2450 call from 50 points. Option settled at 75 points. Marked-to-market profit of $250. HOLD.
On a Double Bottom Formation went long the Cocoa market with a call option. The July 2020 futures contract broke out, but snapped right back. However, since the twelve-month contract low price was not broken, the position was held. The contract has since traded to higher prices. The upside price target is drawing near at 2450. Looking to liquidate this week as the option expiration is just over 30 days. Option expiration is June 5, 2020.
Silver Bull Call Spread (4/29/20)
Long the December 2020 Silver 18.00 / 19.00 call spread from 18.0 points. Spread is theoretically 15.4 points. Marked-to-market loss of $130. ADD.
The Silver futures price was consolidating within a large Pennant Formation. More than that, the contract was trading at the apex of the formation. Went long the market with a call spread anticipating a breakout to the upside. The fundamentals are in line. The price alert to liquidate the position is if the contract falls below the 14.500 support level. The option expiration date is not until November 24, 2020 providing ample time in case a breakout is delayed.
Euro Currency Bull Call Spread (4/28/20)
Long the June 2020 Euro Currency 109.50 / 111.50 call spread from 40 points. Spread is theoretically 69.5 points. Marked-to-market profit of $368.75. HOLD.
There was an Inverted Head & Shoulders Formation in the Euro Currency market. The June 2020 contract broke the upper trend line and went long a call spread to anticipate a change in trend. An Inverted Head & Shoulders Formation is a trend reversal formation. The contract immediately rallied. The upside target is 1.1173, the 200-day Moving Average.The June options expire on June 5, 2020 so this will be a relatively short-term trade.
Silver Bull Call Spread
The long May 2020 Silver 19.00 / 19.50 call spread from 10.0 points (2/19/20) expired worthless on 4/27/20 for a loss of $500.
The Silver market broke the 19.000 price level but soon after the Coronovirus outbreak saw the futures sell-off to new contract lows following the stock market.
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